Monday, 24 November 2014

Sample Questions of Commerce Olympiad

Identify from the following,
which is the correct order of above steps

(a) (i), (ii), (iii), (iv),
(v)

(b) (i), (iii), (iv), (ii), (v)

(c) (iii), (i), (iv), (ii),
(v)

(d) (iii), (i), (iv), (v),
(ii)

2. Which of the following
qualitative features of accounting is reflected, when accounting policies and

conventions are followed
consistently ?

(a) Reliability

(b) Understandability

(c) Relevance

(d) Comparability

3. Window dressing in
accounting refers to-

(a) Showing more or less
profit than true and fair profit

(b) Showing more profit than
true profit

(c) Showing less profit than
true profit

(d) Disclosure of information
about accounting policies

4. Capital is the –

(a) Excess of external
liabilities over the assets

(b) Excess of assets over the
external liabilities

(c) Excess of external
liabilities over fixed assets

(d) Excess of assets over
internal liabilities

5. The term “purchase” is
used only for purchase of _______________and is never used for the purchase of

______________

(a) Assets, Investment

(b) Assets, Goods

(c) Intangible assets, Goods

(d) Goods, Non current assets

6. Cash discount is allowed
at the time of ________

(a) Receiving early payment
of due amount

(b) Sale of goods in bulk
quantity

(c) Both at the time of sale
of goods and receiving the payment

(d) Making payment for
purchase of goods

7. Which accounting principle
is followed when a firm makes provision for doubtful debts on debtors ?

(a) Consistency

(b) Materiality

(c) Going concern

(d) Prudence

8. All the following items
are classified as fundamental accounting assumptions EXCEPT –

(a) Consistency

(b) Business entity

(c) Going concern

(d) Accrual

9. Mr. Harish purchased a
motorcycle for his son on credit and recorded it as purchase of asset in the
business books. He has violated –

(a) Money measurement
principle

(b) Periodicity

(c) Consistency

(d) Accounting entity principle

10. Name the principle which
treats all rupees alike whether it is rupee of year 1972 or 2012 –

(a) Money measurement
principle

(b) Periodicity principle

(c) Consistency principle

(d) Accounting Entity

11. The adjustments for
outstanding expenses, prepaid expenses, accrued income and unearned income are

made as per which of the
following accounting principle ?

(a) Entity

(b) Periodicity

(c) Matching

(d) Conservatism

12. “IFRS” stands for

(a) Indian Financial
Reporting System

(b) International Financial
Reporting Standards

(c) Internal Financial
Recording System

(d) International Financial
Reporting System

13. Which of the following is
the source voucher/document ?

(a) Debit voucher

(b) Credit voucher

(c) Transfer voucher

(d) Invoice

14. In Accounting equation
outstanding rent is an example of –

(a) Increase in Assets and
decrease in Capital

(b) Increase in Liability and
decrease in Capital

(c) Decrease in Liability and
Capital

(d) Increase in Assets and
Capital

15. Credit means-

(a) Increase in Assets

(b) Increase in Liability

(c) Decrease in Liability

(d) Decrease in Capital

16. Which of the following is
the odd one out with reference to the nature of accounts ?

(a) Interest A/c

(b) Outstanding Interest A/c

(c) Advance Interest A/c

(d) Accrued Interest A/c

17. While passing an entry
for purchase of goods of the list price of ` 10,000
from Mr. Vikas who allowed 10%

trade discount and 5% cash
discount. ___________A/c will be debited with ______________

(a) Purchases, ` 10,000

(b) Purchases, ` 8,500

(c) Vikas, ` 8,550

(d) Purchases, ` 8,550

18. The debit balance of a
personal account is __

(a) Cash in hand

(b) Amount receivable

(c) Income earned

(d) Amount payable

19. Which of the following
accounts are normally balanced __

(a) Personal and Nominal
accounts

(b) Real and Nominal accounts

(c) Personal and Real
accounts

(d) Personal, Real and
Nominal accounts

20. Which document is sent to
a customer when he returns the goods, which were sold to him on credit ?

(a) Credit Note

(b) Cheque

(c) Debit Note

(d) Return Invoice

21. Furniture used by a
Furniture dealer for furnishing his office will be credited to___

(a) Furniture A/c

(b) Cash A/c

(c) Sales A/c

(d) Purchases A/c

22. Which of the following
transactions will result in lower balance in the bank column of Cash Book in

comparison to Pass Book ?

(a) Interest credited by
Bank, not recorded in Cash Book

(b) Bank charges not recorded
in Cash Book

(c) Cheques sent to bank, but
not yet credited

(d) Cheques paid into bank,
and duly collected

23. Overdraft as per Pass
Book is ` 10,000, Cheques deposited but
not credited ` 2,500. What will be the
balance as per Cash Book ?

(a) Overdraft ` 7,500

(b) Favourable Balance ` 7,500

(c) Favourable Balance `12,500

(d) Overdraft ` 2,500

24. A cheque issued for ` 108
was recorded twice in the Cash Book. When the balance as per Cash Book is

taken as base, while
preparing the Bank Reconciliation Statement __

(a) ` 108
will be substracted

(b) ` 216 will be added

(c) ` 216
will be substracted

(d) ` 108 will be added

25. The Trial Balance checks

(a) Honesty of Book keeper

(b) Systematic recording of transactions

(c) Arithmetical accuracy of
books

(d) Frauds of Accountant

26. Purchase of computer for
office worth ` 24,000 has been debited to
office expenses A/c. Which type of

error is this ?

(a) Clerical error

(b) Error of Principle

(c) Error of Omission

(d) Error of Commission

27. Which of the following
errors will not affect the Trial Balance ?

(a) Wrong carry forward
balance of an account

(b) Wrong totalling of an
account

(c) Omission of an account
from the Trial Balance

(d) Posting in wrong account
on correct side

28. Purchased goods from
Kavish for ` 4,800 but was recorded to the
debit of Kavish as ` 8,400. In the rectifying
entry, Kavish's A/c will be ________

(a) Credited with ` 13,200

(b) Debited with ` 3,600

(c) Credited with ` 4,800

(d) Debited with ` 13,200

29. In which of the following
errors, Suspense account will be opened in rectifying entry ?

(a) Goods worth ` 4,800
withdrawn by proprietor omitted to be recorded

(b) Goods returned by Naresh` 480
was recorded in sales book

(c) Ramesh who owed us ` 400
has been credited with ` 4,000

(d) Sales of ` 1,296
to Rohitwas entered in the sales book as ` 1,269

30. Which of the following is
NOT an error of commission ?

(a) A sale of ` 1,080
not recorded in books at all

(b) Instead of crediting
Nidhi, Vidhi is credited

(c) Rent paid to landlord was
posted to Landlord's A/c

(d) A purchase of ` 480
was wrongly posted to sales A/c

Attempt ANY ONE Section out of Section A and Section B

Section - A

(From Q. No. 31 to 40)

31. Depreciation is provided
on___

(a) Current Assets

(b) Intangible Assets

(c) Tangible Fixed Assets

(d) Fictitious Assets

32. Which of the following is
not the cause of depreciation ?

(a) Physical wear and tear

(b) Expiry of period

(c) Expiry of legal rights

(d) Theft of an asset

33. A machine was purchased
on 1 April, 2011 for ` 5,00,000 and on 1 October,
2011 a new machine is added for ` 2,00,000. Calculate the
balance of machine account, on March 31, 2012 if depreciation is charged @ 20%
p.a on Written Down Value.

(a) ` 6,00,000

(b) ` 5,60,000

(c) ` 6,60,000

(d) ` 5,80,000

34. X Ltd. Purchased a
machine on 1.1.2012 for ` 2,40,000. Installation
expenses were ` 20,000. Residual value of
machinery after 5 years ` 10,000. On 1.7.2012, repair
expense was incurred to the extent of ` 4,000. Depreciation is
provided @20% by Straight Line Method. Find out the amount of depreciation for

the fourth year.

(a) ` 50,000

(b) ` 34,000

(c) ` 42
,000

(d) ` 50,800

35. Which of the following
statements are correct about “Provisions’

i. Provision is a charge
against profit of an enterprise

ii. Provision is created out
of profit

iii. Creation of provision is
necessary for a business

iv. Provision is created to
meet a known liability

(a) i,ii and iii

(b) ii and iv only

(c) i,iii and iv

(d) i and iv only

36. Who pays the noting
charges initially, when an endorsed bill is dishonoured ?

(a) Drawer

(b) Drawee

(c) Endorser

(d) Endorsee

37. What will be the due
date, If a bill is drawn on 13 July, 2012 for 30 days ?